Indonesia seeks Russia oil and LPG deal without disrupting US ties

Energy minister says Jakarta will pursue multiple supply options to secure national needs amid global uncertainty.

Bahlil Lahadalia speaks to journalists at the Merdeka Palace, accompanied by Teddy Indra Wijaya.
Teddy Indra Wijaya (left) accompanies Bahlil Lahadalia as he speaks to journalists at the Merdeka Palace in the Presidential Palace complex, Jakarta, on Thursday, April 16, 2026. Photo by Bayu Pratama/Antara

Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, has signaled that Jakarta’s ongoing negotiations with Russia for crude oil and liquefied petroleum gas (LPG) imports will not come at the expense of its long-standing energy cooperation with the United States.

Speaking at the Merdeka Palace in Jakarta on Thursday, Lahadalia emphasized that Indonesia is adopting a pragmatic and flexible approach to energy diplomacy, aimed at securing stable supplies in an increasingly volatile global market.

“It should be noted that we require around 300 million barrels of crude oil annually. Therefore, we will seize every opportunity because it is important to pursue all options that serve national interests,” he said.

His remarks come as Indonesia intensifies efforts to diversify its energy import sources amid shifting geopolitical dynamics and growing concerns over global supply stability. While Russia is emerging as a potential new partner, Lahadalia stressed that existing cooperation with the United States remains intact.

Indonesia’s energy landscape has long been shaped by a widening gap between domestic production and consumption. The country currently produces around 600,000 barrels of oil per day, far below its daily consumption of approximately 1.6 million barrels. This leaves a shortfall of about one million barrels per day, which must be met through imports.

“Global circumstances have prompted the government to identify alternative sources of oil, reaching out to more than one country,” Lahadalia said.

The minister’s comments followed a briefing to President Prabowo Subianto on the progress of negotiations with Russia. The talks are part of a broader strategy to strengthen Indonesia’s energy security by expanding its network of international suppliers.

The diplomatic push gained momentum after Prabowo’s meeting with Russian President Vladimir Putin in Moscow on April 13. During the visit, the Indonesian leader tasked Lahadalia with conducting follow-up discussions with Russian Energy Minister Sergey Tsivilyov.

According to Lahadalia, the ministerial-level talks in Moscow were productive and yielded encouraging signals from the Russian side.

“We will secure a crude oil supply from Russia. In fact, the Russian side has voiced readiness to help Indonesia build several key pieces of infrastructure to strengthen our energy reserves and security,” he said.

The proposed cooperation extends beyond simple supply agreements. It includes potential collaboration on infrastructure development, such as storage facilities and logistics systems, which are critical for ensuring long-term energy resilience.

Indonesia’s interest in Russian oil comes at a time when global energy markets are undergoing significant shifts. Supply disruptions, geopolitical tensions, and fluctuating prices have prompted many countries to reassess their energy strategies and seek more diversified sources.

For Indonesia, expanding partnerships is seen as a necessary step to reduce vulnerability to external shocks. By engaging multiple suppliers, the government aims to ensure continuity of supply while maintaining bargaining power in negotiations.

In addition to crude oil, Indonesia is also exploring the possibility of importing LPG from Russia. Lahadalia noted that discussions on LPG are still ongoing and may require several more rounds of negotiation before a final agreement is reached.

“As for LPG, it may take two to three more rounds of talks to finalize the deal,” he said.

In contrast, negotiations on crude oil are believed to be nearing completion. “As for talks on crude, I believe we are already at the final stage,” he added.

LPG plays a crucial role in Indonesia’s domestic energy consumption, particularly for household use. The country relies heavily on imports to meet demand, making supply stability a key concern for policymakers.

The government’s approach reflects a broader effort to balance economic, political, and strategic considerations in energy policy. While engaging with Russia offers potential advantages in terms of supply and pricing, maintaining strong ties with the United States remains equally important.

Analysts note that Indonesia’s position as a non-aligned country allows it to pursue such a multi-directional strategy. By avoiding overdependence on any single partner, Jakarta can navigate complex geopolitical dynamics while safeguarding its national interests.

At the same time, the expansion of energy partnerships may require careful management to ensure compliance with international regulations and avoid unintended diplomatic consequences.

The potential involvement of Russia in infrastructure development could also have long-term implications for Indonesia’s energy sector. Investments in storage and distribution systems would enhance the country’s ability to manage supply fluctuations and respond to emergencies.

Such developments are particularly important as Indonesia seeks to strengthen its energy security amid rising demand and uncertain global conditions.

Lahadalia’s remarks underscore the government’s commitment to ensuring that energy needs are met through a combination of domestic production and international cooperation. While efforts to boost local output continue, imports are expected to remain a key component of the country’s energy strategy for the foreseeable future.

The ongoing negotiations also highlight the importance of leadership-level diplomacy in advancing economic objectives. Prabowo’s engagement with Putin has provided a platform for deeper cooperation, which is now being translated into technical discussions at the ministerial level.

As talks progress, attention will turn to the implementation phase, where agreements must be translated into concrete supply arrangements and infrastructure projects.

Observers say the outcome of these negotiations could play a significant role in shaping Indonesia’s energy landscape in the coming years. Securing reliable supplies of crude oil and LPG is essential not only for economic stability but also for supporting industrial growth and meeting the needs of a growing population.

At the same time, the government’s willingness to engage multiple partners reflects an adaptive approach to an increasingly complex global environment.

Indonesia’s strategy illustrates how middle powers can leverage diplomatic flexibility to navigate competing interests and secure critical resources. By maintaining relationships with both traditional and emerging partners, Jakarta aims to build a more resilient and diversified energy system.

As Lahadalia indicated, the priority remains clear: ensuring that Indonesia has access to sufficient energy supplies to support its development goals.

In a global landscape marked by uncertainty, that objective is likely to drive continued engagement with a wide range of international partners—both old and new.

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